Article

Protecting your auto dealership from catalytic convertor thefts

Catalytic convertor theft has been an ongoing problem throughout Canada with cyclical and regional surges. These surges are closely tied to downturns in the economy, but more so to the ever-increasing value of the precious metals contained within the catalytic convertor, particularly platinum, palladium, and rhodium.

To mitigate exposure to catalytic convertor theft, the following controls are key:

As thieves need to access the underside of the vehicle to access the catalytic convertor, the following should be implemented:
1. Park vehicles with higher ground clearances in a way that makes them more difficult to access. You can accomplish this by parking trucks and SUVs on the interior of a lot, while vehicles with lower ground clearances form a tight perimeter.
2. Install steel plates or cages on the underside of the vehicle, making the removal of the actual catalytic convertor more time-consuming.
Given that thieves need access to the actual vehicle, the following practices are recommended:
1. Park vehicles at higher risk of catalytic convertor theft indoors whenever possible, or secure outdoor vehicle compounds with substantial and alarmed fences and gates.
2. Ensure the area in which vehicles are stored is very well lit.
3. Install video surveillance cameras to cover the entire lot.
4. Add central monitoring or live surveillance to the alarm and/or video surveillance camera systems.
5. Advertise a centrally monitored alarm system and live video camera surveillance conspicuously throughout your entire property.
6. Employ live security guards to be onsite during all closed periods, or at minimum provide random roving patrols of the dealership and all vehicle storage compounds.
7. Add an aftermarket vibration alarm to vehicles. There are effective devices available for under C$20 in which you can adjust the sensitivity settings to catch even minor vibrations to the vehicle.

Implementing catalytic converter controls can benefit an auto dealership in several ways:

Minimize financial loss: Catalytic converter theft can result in significant financial losses for auto dealerships. By implementing controls, such as steel plates or cages on the underside of vehicles, the removal of catalytic converters becomes more time-consuming and challenging for thieves. This can deter theft attempts and reduce the financial impact on the dealership.
Protect vehicle inventory: Catalytic converter theft can disrupt dealership operations and impact the availability of vehicles for sale. By implementing controls like parking vehicles with higher ground clearances in a way that makes them more difficult to access or securing outdoor vehicle compounds with substantial fences and gates, the dealership can protect its vehicle inventory from theft and ensure a smooth sales process.
Enhance security measures: Implementing catalytic converter controls can also enhance overall security measures at the dealership. Measures such as installing video surveillance cameras, employing live security guards, and adding central monitoring or live surveillance to alarm and video camera systems can help deter not only catalytic converter theft but also other criminal activities on the premises. This can create a safer environment for employees and customers.
Maintain reputation and customer trust: Auto dealerships rely on their reputation and customer trust to attract and retain customers. By taking proactive measures to prevent catalytic converter theft, the dealership demonstrates its commitment to customer safety and security. This can enhance the dealership's reputation and build trust with customers, leading to increased customer satisfaction and loyalty.

Overall, implementing catalytic converter controls can help an auto dealership minimize financial losses, protect vehicle inventory, enhance security measures, and maintain a positive reputation. These benefits contribute to the overall success and profitability of the dealership.

As always, please contact your broker or Marsh Advisory representative if you have any questions or concerns.

Protecting your auto dealership from catalytic convertor thefts

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